Driving Sales Force Effectiveness

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    2008 Maritz All rights reserved. 1

    Driving Sales Force Effectiveness

    AbsTRAcT

    Vendors and their customers have specific goals for their businesses

    and expectations for each other. Unfortunately, they dont always align. In

    thispaper, Michael T. Spellecy of Maritz shares insights and strategies

    designed to better integrate thesegoals and expectations by creating

    lasting partnerships that drive sales. Utilizing real world examples, Spellecy

    constructs a framework that begins by validating the brand with customers

    and employees and concludes by examining several best practices for hiring,

    training, coaching and motivating vendor sales representatives.

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    Table of Contents:

    I. The Current State 3

    II. Business Demands in Conflict 3

    III. The Solution 4

    IV. Validating the Brand with Partners 4

    and the Sales Force

    V. Practical Application: Designing 6

    and Refining Best Practices

    A. Hiring Practices

    B. Training and Reinforcement

    C. Sales Coaching

    D. Incentives and Recognition

    VI. Conclusion 12

    VII. About the Author 13

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    Tactic Channel Customer Enterprise Customer

    Product Push The vendor sales representative

    does not understand how wemake money

    The vendor sales representative

    does not understand my business

    Adoption of NewTechnology

    The vendor sales representative

    expects us to be guinea pigs

    with their unproven technology

    The vendor sales representative

    is minimizing how we use our

    technology today

    Channel

    Load/UnloadThe vendor sales representative

    is trying to move product that

    my customers do not want

    N/A

    Enterprise

    Incentives

    N/A The vendor sales representative

    will automatically lower prices at

    the end of the current quarter

    Enterprise

    Account GrowthThe vendor sales representative

    is attempting to steal our best

    accounts

    The vendor sales representative

    only cares about what I buy, notwhat I need

    SMB Growth The vendor sales representativewants to steal more of our

    accounts

    The vendor sales representative

    has too many opportunities on

    their plate to be effective

    I. The Current StateVendors and their customers (channel partners or enterprise

    buyers) rely heavily upon each other for business success. Yet,

    what should be perceived as a partnership is often rife with

    conflict. According to recent research, both vendors and their

    customers have grown increasingly pessimistic about their

    relationships with each other.

    For example, partner satisfaction with vendors has been

    declining year over year1 leading a majority of vendors to

    have concern over strategic alignment with their partners2.

    And enterprise customers are also feeling the pain with

    almost 2/3 reporting that they are not fully satisfied with

    their vendors3 (Exhibit 1).

    Exhibit 1:

    70

    65

    Consider some common goals of the vendor:

    Vendor Business Vendor Goal Vendor Execution

    Manufacturing/Development

    Increasing volume reduces

    fixed costs per unit and

    recoups R&D expenses

    s 0RODUCT PUSH

    s !DOPTION OF NEW

    TECHNOLOGY

    Distribution )NCREASING INVENTORY TURNSREDUCES LIKELIHOOD OF

    HOLDING PRODUCTS WITH

    declining demand

    s #HANNEL LOAD/UNLOAD

    incentivess %NTERPRISE INCENTIVES

    Service 0OST SALE CONSULTING AND

    implementation creates

    NEW REVENUE STREAMS

    s %NTERPRISE ACCOUNT

    GROWTH

    s 3-" GROWTH

    Clearly, the execution by a vendor of their internal goals

    could warrant an unfavorable reaction from their customers.

    Consider some potential customer interpretations of the

    vendor execution outlined above:

    60Years

    Partner satisfaction withvendors is declining

    2/3 of enterprise customersnot fully satisfied with vendors

    But, while this trend may appear bleak, it also creates a great

    opportunity for proactive vendors. By understanding what

    drives these perceptions and developing an approach that

    addresses the relationship gaps, vendor sales leaders can

    better align sales activity to improve both customer satisfaction

    and loyalty.

    II.Business Demands in ConflictPerhaps the leading causes of these relationship gaps are

    apparent conflicts in goals between vendors and their

    customers. Each business desires growth. Yet, institutional

    priorities often drive decision making. Unfortunately, in many

    B2B relationships, these priorities often fail to consider the

    implications that they may have on another entity.

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    Inform

    theDesi

    gn

    AligntheExperience

    Customers need to solve business problems for themselvesand their clients. They want vendors to be trusted business

    partners that understand their needs. Unfortunately, many

    customers think their vendors are operating only in their

    best interest.

    The key to changing this perception is to develop a sales

    process that works from the bottom up. Put simply, by

    creating sales representatives that are viewed as customer

    allies, vendors can begin to build meaningful relationships

    that in turn drive needed volume and profitabili ty.

    III. The SolutionThe best approach to sales force optimization is grounded

    in research and delivered through a defined set of best

    practices for hiring, training, coaching and motivating

    sales people (Exhibit 2).

    While this approach can have an influence in any segment of avendorssales force, the cumulative impact is greatest when all

    sales representatives are considered. Fortunately, the model is

    essentially the same whether it is implemented for a channel

    sales force, an enterprise sales force or both.

    IV. Validating the Brand with Customers

    and the Sales ForceMore than ever before, customers are in the driversseat

    which is why many vendors are already working to better

    understand and respond to customer needs. Some vendors

    may integrate insights from the sales force to understand thegaps between current expectations and the vendors actual

    capabilities. But while this information may be captured, its

    rarely leveraged by vendors to drive critical decisions around

    hiring, training, coaching and motivating their sales people.

    Exhibit 2:Validate or Update

    Business Objectives and Organizational Requirements

    (as informed by market factors,customerrequirementsand employee needs)

    The Baseline aListento both customers

    and employeesto validatethe

    brand promise and identify

    gapsin brand delivery

    Voice-of-the-CustomerVoice-of-the-SalesForce

    The Process bUtilizespecificbestpractices

    to select,develop and

    retainsalespeople that

    customerswill buy from

    Hiring Practices Training & Reinforcement Sales Coaching Incentives & Recognition

    Select Develop Retain

    SalesEmploymentLifecycle

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    Integrating customer and sales force research is the first step todifferentiated service. By asking the right questions in the right

    way, vendors can establish a baseline that shows where the

    brand is making good on its promises and where its falling

    short for the vendor, their sales people and their customers.

    When customer information is combined with sales force

    research, sales leaders have the power to identify and close

    critical gaps between customer expectations and execution.

    They can understand what is getting in the way of delivering

    against the brand promise. They can then validate or update

    their organizational design and sales processes to better

    prepare their sales representatives for success.

    This combined information also helps sales leaders understand

    how to hire people that customers will actually buy from, how

    to develop and cultivate customer-focused sales capabilities

    and how to create individually-focused incentive and recognition

    strategies that embrace a sales personsneeds and lead to

    sustained success.

    Customer and sales force research can enable companies to

    connect to ongoing performance and drive informed decisions.

    Itcan be linked to important initiativessuch as product launches,

    service level agreements, process improvements and salesforce reorganizations. The resulting critical and ongoing data

    will enable businesses to map current sales objectives and

    anticipate future organizational requirements.

    How do wedo this?There are many ways to collect voice-of-the-customer,

    voice-of-the-partner and voice-of-the-sales force data. Most

    organizations already have mechanisms in place. Consider the

    following sources:

    Account Reviews/Benchmarking Account reviewsandscorecards can provide detailed insight by asking

    current customers and sales people about the relationships

    they share.

    Win/Loss Research Properly designed win/loss researchcan identify both the reasons as to why customers buy

    or dont buy from vendors and the challenges and

    opportunities that sales people encountered.

    Qualitative Research Qualitative research, such asthat derived through focus groups, advisory boards

    and customer symposiums can provide perspectives

    that standard surveys cannot.

    Quantitative Research Quantitative research studiessuch as customer satisfaction and sales force engagement

    surveys can provide large amounts of statistically valid

    data for analysis.

    However, an important component to this process is not how

    the data is collected but how it is analyzed and integrated.

    Establishing statistical linkage between the feedback and

    business results is vital to determine where to take action.

    In most cases, vendors should work backwards from the

    customer and sales force satisfaction data to determine

    what components of the sales process are the most critical

    influencers of purchasing behavior and develop best practices

    for addressing them.

    For example, a channel customer might value a sales

    representative that can develop account penetration plansand makejoint sales calls. But the sales representative may

    have 40 percent of their day consumed with administrative

    responsibilities. Or, an enterprise customer may desire a sales

    representative that can help build a detailed business case and

    co-present it to the CFO. But the sales representative is lacking

    the sophisticated tools and training needed.

    By understanding what customers value and what sales

    people can deliver, sales leaders can begin to develop the

    most appropriate plan for action.

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    cAsE IN POINT

    client: Office Equipment Manufacturer

    Objective: Expand market share by creating differentiated

    offer in channel

    solution:

    Conduct Voice-of-the-Partner research to determineneeds and preferences

    Change Vendor Rep selection and training processChange Partner offers to reflect Partner needs and

    preferences

    Enhance Rep product knowledge trainingExpand Rep development curricula to add account

    targeting, strategic selling, presentation skills, best

    practices, etc.

    Provide non-cash incentives for Rep training andsales performance

    Results: In one year following program change:

    Partner Rep training increased 41 percentManufacturer won the industry training awardSales increased, while market declined 14 percent

    V.Practical Application: Designingand Refining Best PracticesSales force effectiveness protocols are designed to create

    business allies that understand and respond to customer needs.

    From the sales personsperspective, a properly designed and

    executed set of best practices can maximize retention, improve

    individual performance and increase success.

    Establishing a baseline of the customersvalue drivers and the

    employeesinsights is a critical first step towards a more

    effective sales organization. The next step in a comprehensive

    sales effectiveness program is to leverage this baselineinformation in order to better deliver against the four

    critical tenets that impact sales performance.

    The four tenets are:

    Hiring Practices: Hire sales talent customers will buy from

    based on both the traits customersvalue and the traits of

    high performers.

    Training & Reinforcement: Use learning models that expand

    knowledge, recognize human learning processes and reinforce

    behavioral change.

    Sales Coaching: Install a culture of performance-based

    coaching that builds on sales training through the

    enhancement and refinement of skills.

    Incentives & Recognition: Create self-funded reward and

    recognition strategies designed to motivate new hires, the

    core and top performers.

    A. Hiring PracticesMany organizations already have deep-rooted competency

    models in place to help them identify and recruit the right

    salespeople. Theres no doubt that these strategies make a

    difference, but changing market conditions, fresh competition, and

    shifts in strategyrequire a flexible and nimble recruitment strategy

    one that will define success today and down the road.

    Understandably, many sales organizations are reluctant to

    change their hiring strategies because their models have been

    successful in the past. Their top-performers are unmatched

    when it comes to finding and closing deals. But unless every

    new hire is a great success, there are always gains to be made.

    Even a slight improvement in a vendors recruitment strategy

    can incrementally begin to shift a sales teamsperformance by

    raising the bar creating a headstart to optimizing sales

    effectiveness.

    Vendors can further improve hiring practices with the

    following approaches:

    Integrate Customer Insights

    A static competency model will not work in a dynamic,

    customer-driven sales environment. When employers integrate

    enterprise and channel feedback into the hiring process,

    trends can emerge that yield a smarter recruitment strategy

    and balance the successful skills of the past with the current

    and future expectations in the market.

    Transition Knowledge to Sales Management

    The individual traits of a prospective sales person are rarely

    communicated outside of the hiring process. By adding a profiling

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    component that not only initially informs the organization ifan applicant has top performer traits, but also communicates

    to sales managers how to train, coach, reward and recognize

    an individual throughout their career, can create even greater

    opportunities to maximize potential and foster retention.

    How do we do this?Addressing these two key points requires a systematic approach

    that collects and integrates relevant information into the hiring

    process. Mostsales organizationscan get started by partnering

    with their marketing and HR teams, where a great deal of this

    data currently resides.

    To integrate customer information, sales leaders should take an

    active role in analyzing what traitsare mostvalued by current

    and future customers. When trendsemerge, they should be

    linked to existing competency models and prospect strengths.

    For example, customers may place greater emphasis on

    strategic consulting while competency models may be

    heavily weighted towards skills that close the sale. Both

    of these traits are important in defining a successful sales

    representative, but applying too much importance to one

    over the other can result in recruitment strategies that are less

    effective. A strong consultantmay spend a majority of his time

    contemplating strategy, while a strong closer may be perceived

    as too aggressive and unconcerned with understanding the

    customersbusiness requirement. The exact approach will vary

    by vendor but the key is balance between successful sales skills

    and customer needs.

    Transitioning knowledge to sales management, on the other

    hand, generally requires an additional profiling component

    that translates an individualspersonality traits into specific

    and actionabletechniques for training, coaching and motivation.

    This information must be clearly communicated to each sales

    leader through individualized reports.

    For example, does a specific sales representatives profile

    indicate that they need to be developed individually or do

    they prefer a team-based approach to problem solving?

    Does another desire public recognition, career opportunities,

    non-cash rewards or face time with executives for a job well

    done? The key premise is that every individual is different.

    Understanding the drivers of each will help to determine

    the best development plan for maximum performance,

    engagement and retention.

    B.Training & ReinforcementVendors that leverage sales training processes have a distinct

    advantage over their competitors. Yet many still struggle with

    driving organizational compliance to their training programs.

    With 62 percent of organizations taking at least seven months

    to integrate a new sales person4, it is increasingly critical that

    training programs are optimized to ensure that new skills

    translate into immediate performance.

    When designing training programs it is important to

    include customer insights. For example, customer research

    often indicates that it is often more important that sales

    representatives understand a customersbusinesses e.g.

    economics, competitors, trends, issues, buying preferences, etc.

    than to only understand a vendors products and solutions5.

    Additionally, training programs must incorporate employee

    research to better understand both value-creating activities

    and obstacles to delivering them. A recent study indicated that

    activity focus is a critical differentiator between top performing

    sales representatives and those with average performance6.

    Only by understanding how sales people spend their days

    and what non-sales activities are imposed upon them can

    sales leaders begin to better inform, align and promote the

    right sales behaviors.

    Training programs built around customer and employee

    research hold the power to transform sales teams by creating

    effective business allies. Vendors that want to maximize

    training effectiveness should consider the following:

    Train for Individual Preferences

    Individuals learn differently, and one-size-fits-all training

    methods simply dont work. Vendors need to cater to a

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    broader mix of learning styles based on learning profilesof their unique sales force and target those trainings to

    get the most out of their investment. By providing a variety

    of programs, companies can make an impact across a much

    wider audience and create a more positive (and inclusive) sales

    training experience that translates into sales growth.

    Reinforce Concepts

    New skills need to be put into action in order to stick. Training

    programs must promote the completion of specific tasksthrough

    an applied combination of posteventelectronic communication,

    an integrated link to a formal coaching process and non-cash

    reinforcement of both the sales person and sales leader.

    According to research, the average individual retains only 13

    percent of the information from a training session 30 days

    after a training event7. The right reinforcement plan one

    that challenges training participants to re-engage at the

    24 hour, one week and one month intervalscan improve

    retention significantly. Further, when communications are

    connected to a formal coaching process and reinforced with

    rewards they wont simply be managed, they will be completed.

    Build Sales Communities

    Training can set a foundation but can lose momentum whensales people return to the field. Sales teams need communities

    and networks to help them hold on to key information and

    connect the dots between training and real life applications.

    These opportunities are meaningful to sales forces because

    they facilitate the sharing of best practices, enable salespeople

    to share success stories and create a support network that

    drives sales performance.

    How do we do this?Most vendors already invest in sales training. Driving

    performance requires better targeting these investments

    to transform sales representatives into customer allies.

    Training for individual preferences requires an in-depth

    evaluation of current programs coupled with an inherent

    understanding of how the sales force learns. Many vendors

    have found success by modifying existing curriculums to

    incorporate classroom training, self-directed learning and

    role-playing opportunities all of which must be based on

    customers needs. By better aligning curriculums to sales force

    preferences, vendors can improve their sales training ROI.

    For example, if a channel customers top request is for help in

    generating more demand among their customers, sales

    representatives should be learning how to address that request

    through various training techniques. If, in turn, enterprise

    customers commonly ask for help in building a business

    case or demonstrating ROI, these concerns should define the

    training and tools offered to enterprise sales representatives.

    Active reinforcement of training is usually accomplishedby technology links to both the training itself and a formal

    coaching process. By adding a post-work agenda to training

    initiatives, it is possible to communicate reminders at 24 hours,

    one week and one month intervals to both the trainee and their

    manager or coach. This process keeps training top of mind by

    promoting tasks and discussions about the new material.

    For example, if a sales person participates in a training

    program for preparing a business case, a reminder at 24 hours

    may prompt a discussion with a manager to select a specific

    client situation where the approach could be applied. At one

    week, the sales person and manager could be reminded todiscuss a plan and set an appointment with a partner. At

    one month, a final reminder to discuss results and identify the

    next target account, ensuring that the training continues to

    translate into action.

    Sales communities can often be developed through common

    collaboration tools. Existing intranets, shared drives and email

    groups arejust a few reasonable and low cost alternatives

    to connect sales people. Whatever the approach, the focus

    should be on creating an informal network that promotes

    viable, on-going connectivity to contributed content essentially

    building a virtual database that can solve future needs.

    For example, if a sales person is facing an issue related to

    minimizing up-front client capital investment while still

    meeting vendor GP requirements, he may propose the

    situation to network peers. Potentially, another sales

    representative across the country may have faced a similar

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    issue and resolved it to benefit both the vendor and customer.

    Three months later when another sales person faces the same

    issue, he or she could locate the discussion thread and propose

    the same solution.

    cAsE IN POINT

    client: A Fortune 500 Food Company

    Objective: Our client was looking to transition their direct

    sales force from order takers to business partners and

    solution sellers.

    concluded that calls per representative increased by a healthy76 percent among top performers, and by 261 percent in the

    core8 (Exhibit 3).

    Exhibit 3:

    solution: To better position the sales force to become

    business allies, new processes, procedures and technology

    platforms were needed. Items co-developed with client

    included:

    +25% +70%7%

    76% +

    Business-focused learning paths, reinforced withboth performance certification and recognition

    Coaching processes and on-the-job performancemeasurement tools

    Connection of customer satisfaction and businessperformance data to individual performance certification

    reviews

    Results: In the four quarters following the program

    implementation, the client realized increases in both

    market share and sales volume. During the same period,

    the client was also rewarded with a 60 percent increase

    in the retention of their retail sales force.

    C. Sales CoachingCoaching is one of the most effective ways to optimize

    performance and maximize the retention of sales people.

    Good sales coaches raise the bar on performance, helping

    each team member continuously improve.

    According to a recent study, sales representatives receiving

    three hours per month of coaching exceeded their selling

    goals by seven percent, increased revenue by 25 percent and

    increased deal size by 70 percent. The same research also

    Clearly, coaching can become a dynamic and ongoing process

    that drives individuals to higher levels of success. Good coaches

    also promote greater satisfaction and retention of sales people.

    In the right hands, coaching has the potential to be a major

    differentiator.

    To get the most from a coaching program, vendors should

    consider the following:

    Focus on Individual Insight

    Coaching is not about providing answers when sales people

    ask questions. A successful coach must create self-directed

    learning opportunities, generating individual insights by asking

    questions rather than providing answers. Effective coaching

    models use a solution-focused approach designed to stretch

    a sales personsproblem-solving capabilities.

    Prepare the Coach

    Being a coach requires a unique skill set, and its important to

    recognize that your best sales people are not necessarily ready

    to be your best sales coaches. Promoting the right people andpreparing those already in leadership roles with a structured

    plan for coaching is critical to foster engagement. Processes

    and tools must have a direct link to training initiatives, be

    focused on specific tasks and deep rooted in positive feedback

    and recognition rather than corrective action.

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    How do I do this?Developing a sustainable coaching program requires both a

    process and plan to create effective sales coaches. A vendor

    must begin by identifying the right people that will make

    effective coaches. This follows with training on formal, results-

    based coaching techniques and the tools to do the job.

    A focus on individual insight is often created by providing the

    right framework. Coaches must be provided with the right tools

    and procedures to help sales people solve real world problems.

    These tools can be introduced to the prospective coach through

    classroom activity, role-playing scenarios and coach the coach

    sessions. The primary goal of these activities is to provide

    the coach with the means to share knowledge and build

    confidence in their sales people.

    For example, imagine that a sales representative faces an issue

    where he has proposed a large product load to the partner but

    is getting little traction on the idea. A formally trained coach

    might then ask questions leading to insight that restructures the

    product load with different payment terms instantly adding

    value to both businesses.

    Preparing coaches, on the other hand, requires giving them the

    tools needed to exercise their skills in the field. Job aids,

    facilitation guides, and scheduling processes, when combined

    with electronic 24 hour, one week and one month reminders

    that are linked to sales person training initiatives, keep coaching

    top of mind and drive execution.

    For example, a coach may receive notice that one of their sales

    people has been trained to develop ROI analysis. Pulling from a

    vendor-supplied tool kit, the coach would be able to facilitate a

    conversation with the sales person that helps them outline

    a favorable rate of return for a current client project.

    CASE IN POINT

    Client: Major Telecommunications Company

    Objective: Solidify relationships with key customers so as

    to retain business in the midst of competitive price wars

    Solution: Energize entire sales force by rewarding and

    recognizing account-specific milestone achievement

    Established milestones around sales results, training,building/solidifying client relationships; coached

    representatives for milestone achievement

    Moved funds from cash to non-cash awards toincrease reward value

    Provided frequent recognition from senior executivesResults:

    Organizational sales target exceeded by $50 millionPer person sales increased 27 percentLong-term business relationships improved 50 percentD. Incentives & RecognitionSalespeople make important contributions to an organizations

    overall success. In order to sustain and accelerate their growth;

    managers must ensure that all team members not just the top

    performers are fully engaged and motivated. Why? Recent

    research indicates that a five percent performance lift in the core

    translates into a 70 percent greater revenue increase than a five

    percent gain among top performers alone9.

    Integrating best practices for hiring, training and coaching

    sales representatives will prepare an organization for success.

    But, without proper motivation for sales people, vendors will

    probably not see the significant performance gains that they

    envisioned. For this reason, a self-funding, non-cash incentive

    program grounded in incremental improvement should

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    be a critical component to any sales effectiveness solution.With the right design, these programscan address the

    individual motivators of virtually every sales person and shift the

    performance curve of the entire sales force to the right (Exhibit 4).

    Exhibit 4:

    Vendors can get the most from their motivation programs

    with the following approaches:

    Maximize Top Performer Recognition Programs

    Many top performer reward and recognition programs are

    designed without formally understanding what motivates

    and retains this core group. A more effective model should

    incorporate feedback from the people that are likely to qualify.

    By listening to top performing sales people it is possible to

    take the guesswork out of every aspect of these programs.

    Many times, they will challenge commonly held perceptionsabout what program attributes are most effective. The result

    can be more effective program designs that engage more

    than just those who win each year raising the stakes and

    increasing performance in the upper tiers.

    Incorporate Incremental Rewards to Move the Middle

    Engaging the core and new hires is essential, as more than

    3/4 of reward program participants are not motivated by top

    performer programs. The main reason is because they simply

    dont perceive an opportunity to win10. However, because

    of their numbers, middle performers and new hires have an

    enormous potential to improve overall sales performance andtheir contributions should not be overlooked.

    To maximize performance for the core and new hires,

    vendors should offer a self-funded incentive program that

    creates opportunities for everyone to earn meaningful and

    proportional rewards.

    How do I do this?By integrating employee feedback across all reward

    programs vendors create an unprecedented opportunity

    to drive engagement, maximize investments in training

    and coaching and produce results.

    Top performer programs can be optimized by conducting

    surveys before programs are developed to insure maximum

    reach. When the top performer program is a travel reward,

    simply asking those who have the potential to win what

    attributes of the trip are most motivating, can go a long

    way towards optimal program design. Surveys that are

    designed to compare and contrast different trip structures

    can lead to insight that may not have been readily apparent.

    For example, attributes such as face time with executives,

    beach vs. city locations, trip activities, room preferences and

    others can all have an impact on the motivational appeal of

    the reward. A well designed survey can identify the stated

    and derived importance of each attribute across the entire

    population changing the scope of the reward and the

    drive for those to earn it.

    Maximizing motivation for the core follows a similar process but

    focuses more on reward options and recognition preferences.

    By using a separate but detailed survey, it becomes possible to

    better understand the motivators of a diverse group. When the

    motivational preferencesare collected they can be analyzed

    against a number of different reward options leading to the

    right selection of rewards and recognition with the greatest reach.

    For example, reward options ranging from recognition (public,

    private, peer, etc.) to various non-cash options (reward cards,

    gift certificates, reward catalogs, etc.) can be outlined to sales

    people. In the most basic model, each sales representative

    could select their top choices and an analysis could determine

    the combination that would motivate the maximum numberof people.

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    CASE IN POINT

    Client: Financial Services Company

    Objective: Improve sales results of entire sales force

    rather than relying on growth from top performers alone

    Solution: Design incentive program that would

    capture share-of-mind at all levels of the sales force

    while continuing to recognize top performers

    Maintain top-performer travel incentive for bestperformance in each product category

    Open rules structure to reward mid-level performerswho surpassed annual goals by 10 percent

    Fund open structure with increased sales andgenerate positive ROI

    Results:

    Two-thirds of mid-level performers qualified for travelaward and contributed 80 percent of total sales growth

    for the year

    Mid-level players created $14 million in incrementalprofit and outpaced the growth of top performers

    by 16 percent

    Clients sales increased 47 percent, three times theindustry averageVI. ConclusionGetting the most from a sales force is an integrated effort

    requiring ongoing feedback from customers and employees

    that inform how sales leaders hire, train, coach and motivate

    individual sales representatives. By connecting these critical

    drivers, sales leaders create an opportunity to maximize the

    performance of their teams and the individuals that comprise

    them. By actively aligning vendor and customer needs, both

    parties can benefit and look forward to a powerful and

    lasting partnership.

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    Driving Sales Force Effectiveness

    MI - 73206 2008 Maritz All rights reserved. 13 2008 Maritz All rights reserved.

    About the Author

    Michael T. Spellecy,

    Corporate Vice President

    and Managing Consultant, Sales

    Effectiveness Practice, Maritz

    As Corporate Vice-President and

    Managing Consultant, Mike Spellecy

    is responsible for leading the Sales Effectiveness Practice at

    Maritz. With 30 years of experience, Spellecy helps clients

    achieve objectives by developing programs that address the

    behavior of the people who impact results. He has broadexpertise in a number of industries and has contributed to the

    development and delivery of points of view and performance

    improvement programs for such companies as Konica Minolta,

    Coca-Cola, AT&T, HP, Dell, Anheuser-Busch, and HON/Allsteel.

    Spellecys expertise helps clients identify gaps between

    performance expectation and actual results. He educates

    clients on the development and execution of programs that

    address organic sales growth, improved productivity, new

    product launch, share and mix, employee recognition and

    retention and a host of other applications. Before becoming

    the leader of the Sales Effectiveness Practice, Spellecy directed

    the operations group, project management and creative

    resources for Maritz.

    Spellecy has served on the St. Louis Sports Commission and

    the Board of the Olympic Festival. In this role, he led the

    effort to develop the presentation and business plan that

    brought the festival to St. Louis. Spellecy received his Masters

    of Business Administration as well as his Bachelor of Science

    and Bachelor of Arts degrees in marketing and finance from

    Washington University.

    Spellecy has expertise in:

    Creating interventions designed to generate greateralignment, mindshare and loyalty from channel partners.

    Developing methodologies to improve the performanceand selling effectiveness of direct sales resources.

    Counseling clients in the execution ofnon-cashperformance improvement programs.

    END NOTEs:1

    Sales Executive Council, Enabling Channel Partner R elationships, 20052Sales Executive Council, Enabling Channel Partner R elationships, 20053Forrester Research4Sales Performance Optimization /CSO Insights, 20065Maritz Channel Research, 20086Maximixing Sales Force Productivity, Sales Executive Council, 2006

    7Evaluating Sales Training Programs, OnTarget Research8Shifting the Performance Curve: Exporting High-Performance Sales

    Disciplines to the Core, Sales Executive Council, 20049Shifting the Performance Curve: Exporting High-Performance Sales

    Disciplines to the Core, Sales Executive Council, 200410Maritz Poll, 2004